Are you serving or did you serve in the Canadian Armed Forces? Do you need loan assistance for your home? Veteran home loans are for men and women who are serving, or have served in the Canadian military. This scheme is available for active duty persons, reservists and ex service personnel. Guaranteed by the Ministry of Veteran Affairs, this loan scheme makes it possible for members of the armed forces to get a home mortgage quicker than they would with a conventional mortgage system.
How can you get a veteran loan?
The Ministry of Veteran Affairs (VA) has in place a set of criteria that must be met if you are to apply for a home loan using the program. And while it is true that each application is approved based on the merits of its uniqueness, the following conditions must be met before you can apply for a loan.
- Be in active service for at least 90 consecutive days during war time;
- Have at least 181 days of active service in peacetime;
- Have put in at least 6 years in the Reserves or other military system;
- Must be a spouse of someone who dies in active duty or from a service related injury.
As an applicant, you must first complete a COE or Certificate of Eligibility. This will be used to calculate how much you are entitled to borrow based on a set of factors. This form can be gotten from the VA website. Other essential requirements include:
- Good credit score
- Sufficient income to pay the mortgage
- A signed statement that you will live in the home
You may also want to check the VA Mortgage Guidelines 2018 for more information.
How it works
While it is true that the VA loan process is very similar to other mortgage schemes, there are specific processes that make it different from traditional mortgages.
First of all, you cannot just walk into any mortgage facility and apply for a VA loan; the lender has to be approved by the VA. The VA loan program is not a lender neither does it actually give out loans, rather it partners with mortgage and government lenders to provide mortgage loans to veterans at better terms than can be gotten from conventional mortgage lenders.
Once you have gotten a VA approved lender, you will need to work with a realtor who specializes in getting homes for veterans so that you can get a favourable deal. You will then need a purchase agreement so that the loan application can proceed.
The VA will carry out an appraisal to make sure you are paying the appropriate value for the house and not getting ripped off. It is at this stage that the loan company will require documents to prove that you can actually pay the mortgage; this is where the VA loan system comes in. Once everything is discovered to be intact, the program will underwrite your loan and the deal will be successfully closed. All that is left is for you to decide when you want to move into your new home.